U.S. and China Engage in Crucial Trade Talks Amid Tensions

KUALA LUMPUR, Malaysia, Oct 25 (Reuters) – Top economic officials from the U.S. and China concluded their first day of talks on Saturday in Kuala Lumpur. A U.S. Treasury spokesperson characterized the discussions as “very constructive.” The two nations are eager to prevent escalating trade tensions ahead of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping scheduled for next week.

The negotiations are being held alongside the Association of Southeast Asian Nations summit. Officials aim to establish a strategy forward after Trump announced new tariffs on Chinese goods, effective November 1, in response to China’s increased controls on rare earth minerals.

Chinese Vice Premier He Lifeng, who waved to reporters upon arrival, did not make any comments as he left the venue, Merdeka 118 tower, known as the second-tallest building in the world. China’s chief trade negotiator Li Chenggang also participated in the discussions, arriving with He earlier in the day.

A Treasury spokesperson noted, “They have been very constructive, and we expect them to resume in the morning.” Though specific details about the meetings remain scarce, the three officials will aim to lay groundwork for the Asia-Pacific Economic Cooperation summit in South Korea, where significant issues concerning tariffs and technology controls are expected to arise.

Just before the talks began, Trump departed Washington on a five-day trip to Asia, marking his first visit to the region since taking office in January. His itinerary includes stops in Malaysia, Japan, and South Korea, where he hopes to finalize trade agreements and address complex issues including a freeze on U.S. soybean purchases by China.

Trump stated, “We have a lot to talk about with President Xi… I think we’ll have a good meeting.” He also indicated that the Taiwan situation and the imprisonment of Hong Kong media tycoon Jimmy Lai would be on the agenda. As tensions rise, analysts like Josh Lipsky from the Atlantic Council have expressed doubts regarding the possibility of reaching a significant agreement.

The ongoing trade war, which intensified with recently introduced U.S. export restrictions affecting thousands of Chinese firms, continues to strain relations. This week, the U.S. accused China of attempting to manipulate its dominance within critical supply chains. As negotiations progress, the outcome remains uncertain, leading experts to urge caution, emphasizing the potential for further escalation should no satisfactory deal be reached.